- Behnam made a striking comparison during the Futures Industry Association Expo.
- The CFTC has also been looking at other DeFi platforms like Polymarket and Ooki DAO.
The CFTC is putting a lot of effort into decentralized finance (DeFi). CFTC Chair Rostin Behnam has made it clear that aggressive regulation of this developing field is not negotiable, a month after the agency resolved accusations against key DeFi protocols.
Behnam made a striking comparison during his talk at the Futures Industry Association Expo in Chicago. He compared the scenario in the DeFi world to one in which only some people need a driver’s license. In addition, he doubted that patients would choose unqualified medical professionals. Therefore, the importance of DeFi sector regulation cannot be overstated.
Obvious Threat Claim
Behnam’s views are shared by many at the CFTC. The CFTC’s Director of Enforcement Ian McGinley recently voiced his agency’s worry about the lack of oversight in the DeFi exchange market at a conference. He called them an “obvious threat” to markets under CFTC regulation.
In addition, he emphasized the department’s attempts to regulate decentralized platforms that sell fundamental derivatives based on digital assets.
The CFTC has recently shown its mettle by resolving allegations against Opyn, ZeroEx, and Deridex with hefty fines. It turned out that these platforms were doing something that necessitated them getting CFTC licenses. Notably, the CFTC has also been looking at other DeFi platforms like Polymarket and Ooki DAO.
Not everyone agrees with the CFTC’s strategy, however. Coinbase CEO Brian Armstrong has pushed the DeFi protocol developers to sue the government agency. He thinks that these kinds of measures are driving a vital sector of the economy overseas.
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